Data center zoning battles continue across the U.S., with local governments weighing economic benefits against environmental and infrastructure concerns. In Fredericksburg, VA, the Planning Commission narrowly voted against allowing by-right data center development, signaling potential delays for future projects. Meanwhile, Loudoun County is debating a similar move, and Reno is considering a temporary halt on new permits.
On the incentive front, Minnesota lawmakers are evaluating whether to extend tax breaks for data centers, while Kentucky’s recent incentives have spurred significant investment. Additionally, PJM Interconnection has received approval to fast-track power projects to meet surging data center demand, and PG&E is accelerating grid connections in California. As data center expansion reshapes communities nationwide, balancing economic growth and regulatory oversight remains a central debate.
Fredericksburg, VA Planning Commission Rejects By-Right Data Center Zoning
The Fredericksburg Planning Commission narrowly voted 4-3 against recommending an ordinance allowing data centers by-right on a 250-acre site in Celebrate Virginia South. If the City Council follows this recommendation, future data center projects will require special use permits, adding regulatory hurdles.
Despite this setback, council members have signaled strong support for moving forward, citing the economic benefits of an awaiting developer’s project. Opponents argue that the push for expedited approval overlooks unresolved concerns about environmental impact, water usage, noise, and energy demands. A final decision could come after a public hearing scheduled for February 25.
Read The Full Article at Fredricksburg.com
NPR’s Marketplace Looks at The Impact of Ohio’s Data Center Boom
New Albany, Ohio, has become a hotspot for data center development, with over 100 facilities from tech giants like Meta, Google, and Amazon. These centers require massive amounts of electricity, leading to the construction of high-voltage transmission lines that cut through farmland and rural communities.
In a recent Marketplace segment, investigative journalist Mya Frazier discusses the impact on local farmers and rising land prices, among other issues. While Ohio’s privatized economic development arm, JobsOhio, has facilitated deals, many residents feel powerless as Big Tech reshapes the landscape. As demand for data centers grows, tensions over land use and energy infrastructure are likely to intensify.
Read The Full Q&A at Marketplace
Loudoun Supervisors Weigh Eliminating By-Right Data Center Approvals Amid Industry Pushback
Loudoun County supervisors are considering removing by-right allowances for data centers, requiring all applications to go through legislative approval. The Planning Commission previously declined to support a blanket ban but suggested removing by-right approvals in specific areas and implementing a grandfathering resolution for pending applications. The proposal has sparked debate, with town mayors and environmental groups supporting stricter oversight, while industry representatives and the Chamber of Commerce warn of economic repercussions and regulatory uncertainty. The board must weigh these concerns as it moves forward with zoning changes.
Read The Full Article at Loudon Now
Minnesota Considers Extending Data Center Tax Incentives
Minnesota lawmakers are debating whether to extend lucrative tax breaks for data centers, a move advocates say is crucial for the industry’s expansion in the state. The existing sales tax exemptions, currently valued at around $100 million annually, cover equipment, software, cooling infrastructure, and electricity.
Supporters, including utilities and the Data Center Coalition, argue that these incentives attract investment, create jobs, and keep Minnesota competitive with data center hubs like Virginia and Illinois. With Xcel Energy and Great River Energy planning to power data centers with up to 2,300 MW in the next five to seven years, they claim the market is poised for exponential growth.
However, opponents, including Rep. Aisha Gomez, argue that the tax breaks primarily benefit major tech firms like Amazon, Google, and Microsoft at the state’s expense. Critics are also concerned that switching from a rebate system to an upfront exemption would make it harder to track the total cost of the incentives, particularly as Minnesota faces a potential budget deficit.
The debate mirrors national discussions, with states like Georgia recently reconsidering similar incentives. With bipartisan support in the Senate but skepticism in the House, the fate of Minnesota’s data center tax breaks remains uncertain.
Read The Full Article at GovTech
Chesterfield County, VA Eyes Data Centers for Westchester Commons & Upper Magnolia Green
Chesterfield County’s Economic Development Authority (EDA) has submitted rezoning requests for two new data center developments—one at the Upper Magnolia Green west tract near Moseley and another at Watkins Centre near Westchester Commons. The proposal also includes a conservation area, Swift Creek Preserve, covering 350 acres east of the planned Powhite Parkway extension.
While both sites are mostly zoned for data centers, the rezoning would incorporate additional parcels. The EDA, which owns much of the land and is acquiring more, claims the projects will generate jobs, tax revenue, and business opportunities. However, critics raise concerns about noise and high energy consumption.
PG&E Accelerates Data Center Connections to Support Northern California’s Growing Energy Needs
Pacific Gas and Electric Company (PG&E) is ramping up efforts to support the growing energy demand from data centers across Northern and Central California. The utility is working to connect approximately 5.5 gigawatts (GW) of new data center load over the next decade, with 1.4 GW currently in final design and expected to come online between 2026 and 2030.
PG&E’s strategy includes a recently submitted Rule 30 tariff proposal, designed to create a transparent, efficient, and equitable process for connecting large energy users like data centers, tech campuses, and manufacturing facilities. By allowing customers to fund their interconnection costs upfront and be reimbursed as load materializes, PG&E aims to accelerate project timelines while ensuring existing customers are not burdened with costs from unrealized projects.
Additionally, PG&E projects that every 1 GW of new data center demand could help lower electric bills by 1-2% for all customers. The increased load enables PG&E to better utilize its existing power infrastructure, spreading costs more efficiently.
PG&E will further explore these topics as the host utility at the upcoming DTECH Data Centers and AI Conference (May 27-29, 2025, in San Jose), focusing on how utilities are addressing AI-driven data center growth.
Opinion Piece Argues That Congress Must Move from Research to Action in Protecting U.S. Data Centers
In their opinion piece for The Hill, “Congress Should Stop Researching Data Center Threats and Start Protecting Them,” Annie Chestnut Tutor and Wilson Beaver argue that while the federal government has extensively studied threats to data centers, it has failed to take necessary legislative action to mitigate these risks. They highlight emerging threats, including cyberattacks, physical attacks, and electromagnetic pulse (EMP) events—either natural geomagnetic disturbances or intentional attacks—that could disrupt the nation’s digital infrastructure.
The authors reference former President Trump’s Stargate Project, a $500 billion private investment in data centers, as an example of the growing demand for AI-powered infrastructure, yet note the absence of federal security mandates. They argue that the Federal Data Center Enhancement Act, included in the 2024 National Defense Authorization Act (NDAA), does not explicitly require EMP protections, leaving data centers vulnerable.
Tutor and Beaver call on Congress to amend the NDAA to mandate EMP and geomagnetic disturbance protections for all new data centers. Additionally, they advocate for retrofitting existing facilities, despite the associated costs, due to the critical role data centers play in national security. While past congressional reports have recognized the threat, the authors criticize lawmakers for failing to act decisively. They urge Congress to leverage existing research and include concrete data center security provisions in the 2026 defense authorization bill.
Read The Full Piece at The Hill
Reno Planning Commission Recommends Temporary Pause on Data Center Permits
The Reno Planning Commission has voted 4-2 to recommend a temporary halt on filing and issuing data center permits, citing the need for a deeper review of their economic and environmental impacts. Commissioner Manny Becerra introduced the resolution, noting a lack of established guidelines. While Mayor Hillary Schieve acknowledged the complexity of the issue and the need for evaluation, Commissioner Alex Velto opposed the pause, arguing it could compromise the commission’s objectivity and invite legal challenges. The City Council will now consider the recommendation.
Amazon’s Warrenton Data Center Faces Another Year of Delays Amid Legal Battles
Nearly two years after receiving approval, Amazon’s planned data center in Warrenton, VA, remains stalled due to ongoing lawsuits. A new court order has halted construction until at least March 2026, as legal challenges over a 2021 zoning change continue. Meanwhile, the recently elected town council, which opposes the project, is reevaluating its stance on the case and may withdraw its defense.
Complicating matters further, Dominion Energy’s power infrastructure plans for the facility remain in limbo due to disputes over substation placement and underground power line requirements. With litigation dragging on and local leadership shifting against data center development, Amazon’s $39.7 million investment in Warrenton faces an uncertain future.
Read The Full Article at Facquier.com
PJM Fast-Tracks Power Projects to Meet Data Center Demand
PJM Interconnection, the largest U.S. regional grid operator, has received FERC approval to expedite the review of up to 50 new power generation projects to address growing energy demand, primarily driven by data center expansion. These projects—likely to include several large-scale natural gas plants—will supplement capacity across PJM’s 13-state territory, which faces potential energy shortages as early as 2026/27.
The decision follows PJM’s latest Long-Term Load Forecast Report, which highlights data centers as the primary driver of energy demand growth, particularly in Northern Virginia. Estimates for large-scale load additions by 2029 have doubled from 15GW to 30GW. Natural gas is increasingly seen as the only viable energy source to keep pace with demand, with utilities planning over 20GW of new gas-fired generation by 2040, especially in Virginia, South Carolina, and Georgia.
As state and local governments grapple with zoning and permitting challenges for new energy infrastructure, the fast-tracking of PJM’s projects could set a precedent for future approvals in high-demand regions.
Read The Full Article at Data Center Dynamics
Kentucky’s Data Center Incentives Drive Growth, But Raise Questions
Kentucky’s recent tax incentives for data centers have sparked major development, with a new 153-acre project in Louisville near Shively set to break ground this year. The legislation, passed last year, offers a 50-year sales tax exemption on equipment for data centers investing at least $450 million, with a 15-year break for site development work.
The incentives played a key role in attracting the project, being developed by PowerHouse Data Centers and Louisville-based Poe Companies, for an unnamed tech giant. Developers anticipate billions in investment, creating thousands of construction jobs and generating substantial tax revenue.
While Kentucky lawmakers consider expanding the incentives beyond Louisville, concerns are growing over long-term tax revenue impacts, transparency, and potential environmental consequences. Similar tax breaks in Virginia, Washington, and other states have faced scrutiny, with critics urging caps on subsidies and periodic reporting requirements to ensure accountability.
With Kentucky now in active discussions with 16-20 data center prospects, some see this as a game-changer for the state’s economic development, while others caution against unchecked tax exemptions. The debate over balancing incentives with public benefit is just beginning.
South Fulton Community Voices Concerns Over Data Centers Amid Leadership Controversy
In South Fulton, Georgia, community members gathered to discuss the impact of large data centers being built in their neighborhoods. These centers, which store high-tech computer equipment, offer significant tax incentives, but concerns were raised about their high energy use and limited job creation. Despite South Fulton Mayor Kobi’s encouragement for public dialogue, he did not attend the meeting, with Palmetto Mayor Teresa Thomas-Smith being the only elected official present. Mayor Kobi, who has been stripped of many of his duties amid controversy over his spending, has been vocal against data centers, calling them part of a broader issue in the city. Attendees expressed their commitment to continued discussions and planned to attend upcoming meetings to address these concerns further.
Read The Full Article at WSBTV
Balancing Arizona’s Tech Boom with Resource Constraints
Arizona’s rapid growth as a high-tech hub has fueled economic expansion, with 96 major data centers and multiple semiconductor fabrication plants now operating in the state. However, this progress comes with significant energy and water demands. By 2050, electricity prices could rise 47%, while water allocations face increasing scrutiny due to ongoing shortages.
Local governments are responding with stricter regulations on high-volume water users and investments in renewable energy and water conservation. As Arizona navigates the challenges of sustainability, officials and tech companies must balance economic growth with resource management to ensure long-term viability.
